December 20, 2005

A Publication of the Economic Development Corporation of Utah, edcUTAH.org

PRESIDENT'S MESSAGE

Solid Job Growth in 2005

As we near the end of 2005, it’s good to look back upon the year to consider what has been accomplished and, perhaps more importantly, decide what can and should be done in the coming year. As we enter 2006, Utah’s economy is solid, with recent reports showing one of our strongest job growth rates in recent memory. Today’s issue looks at that indicator, how it relates to economic development and what it means to our economy.

Today’s issue also includes a number of ED-oriented stories from the past week and another of our informative Investor Spotlights. If you have comments, suggestions or topics you’d like to see in the Economic Review, please send your comments by clicking the “Comments” button on the bottom of this page.

All the best to you and yours this Holiday Season!

Jeff Edwards
President and CEO

FEATURE STORY

2006 Looks Bright for Utah Jobs, Economy

Utah is heading into 2006 with a robust economy and steady gains in job numbers. In fact, during 2005 the state added jobs at a pace not seen since 1997, the last time Utah broke through its average growth rate of 3.3 percent.

Mark Knold, senior economist for the Utah Department of Workforce Services, says Utah will end 2005 with a job gain of approximately 3.8 percent; an increase of nearly 41,200 jobs for the year that ended November 30. In comparison, the national average is 1.5 percent job growth.

Utah Job Growth Between Nov. 2004-2005 (non-farm)	Number of Jobs	Percent Change
Construction	9,700	12.8%
Professional, business	7,800	5.9%
Trade, transportation, utilities	6,800	1.0%
Education, health	4,700	1.7%
Government	3,100	1.5%
Leisure, hospitality	2,100	2.1%
Manufacturing	1,900	1.8%
Information	1,800	2.7%
Financial	1,800	2.7%
Natural resources	1,100	13.4%
Other	500	1.4%

Source: Utah Department of Workforce Services

Jobs are being added across the state in most industries and in all income ranges, from those paying near minimum wage to high-paying skilled positions. Knold says job growth of 3.8 percent is certainly sustainable through 2006. “It’s probable the state will do even better than that.” The robust job numbers are evidence that economic development in the state is finally catching up with its population growth, and that investment activity in the construction sector is in anticipation of future needs and future growth.

Utah’s job growth drove down its unemployment rate in November to 4 percent, from 5.1 percent in November 2004. Meanwhile, the U.S. Labor Department reported the nation's unemployment rate for November was unchanged at 5 percent. About 49,900 Utahns were unemployed in November 2005, compared to 61,000 in November 2004.

The construction sector added 9,700 new jobs over the past year—a growth rate of 12.8 percent. Knold says the increase in construction jobs is the highest the state has seen in 10 years; however, a 12.8 percent increase in construction jobs is unsustainable. He expects a healthy, but more sustainable, increase of approximately 6-8 percent in 2006. The largest volume of construction growth is in Salt Lake, Davis, Utah and Washington counties.

The professional and business services sector added 7,800 jobs over the past year, a 5.5 percent rate of growth, while the trade, transportation and utilities sector added 6,800 new jobs over the past year. The manufacturing sector added another 1,900 jobs—down a bit from slightly higher gains seen earlier this year. Knold says the sector is growing, but the slower employment gains suggest some moderation within the manufacturing environment.

Fluctuations in the growth rates of the various sectors are to be expected. However, Knold says slowdowns in some sectors will probably be picked up by increases in other sectors, thus sustaining or outpacing the 2005 job gains.

Gains in Utah’s job numbers further indicate that statewide economic development is strengthening; however, more can be done. EDCUTAH continues to encourage job growth by bringing additional capital investment and the relocation and expansion of companies and jobs to the state.

CALENDAR

Jan. 11:
Washington County Economic Summit (www.whatsupdownsouth.com) (St. George)

Feb. 10-12:
EDCUTAH Site Consultant Event (Park City)

March 8-9:
Big Business and Technology Expo (Orem)

April 6-7:
Utah League of Cities and Towns Spring Convention (St. George)

April 9-12:
BIO 2006 Annual Conference (Chicago)

April 23-26:
CoreNet Global Summit Spring Convention (Philadelphia)

May 3-4:
Salt Lake Chamber Business-to-Business Expo

May 21-24:
ICSC Spring Convention (Las Vegas)

EDCUTAH PARTNERS

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Board of Trustees

IN THE NEWS

Business Headlines from the Past Week

Micron Asks to Extend RDA

- Lehi is preparing to install millions of dollars worth of road, sewer, electric and other projects in preparation for the expansion of the Micron plant. (Daily Herald)

Financial Incentives OK'd for 3 Firms

- The Governor's Office of Economic Development Board has approved financial incentives for three companies to put operations in rural Utah. (D-News)

Grants For Rural Entrepreneurs

- The Governor’s Office of Economic Development Board has awarded six Utah counties with grants earmarked for the incubation of rural entrepreneurs. Grand, Carbon, Sanpete, Iron, Box Elder and Tooele Counties will receive the grants, totaling $250,000. Funding was provided through legislation sponsored by Sen. Pete Knudson. (Press Release)

Developers Propose Sports Complex Deal for Highland

- Highland City is negotiating with a developer who has offered to build a sports park in exchange for higher housing densities in a proposed subdivision. (Daily Herald)

Kennecott's Vision: 'Non-mining Assets' to Become Well-Planned Communities

- The numbers are big: nearly 93,000 acres, 144 square miles and a half-million new Wasatch Front residents in the next 75 years. And behind it all is Kennecott Land, the little sister of mining company Kennecott Utah Copper. (D-News)

Park City Seeks BLM Land

- Park City would like to buy some of the open space for about $10,000 an acre. That's the amount the city is offering the Bureau of Land Management for roughly 116 acres of prime, undeveloped property the federal agency owns within the city limits. The total amount the city wants to pay would be about $1.16 million…others are saying the land is worth many times that amount and that the city's proposed deal would be a colossal rip-off of U.S. taxpayers. (D-News)

Brian Head Ski Resort Proposes Expansion

- A proposed expansion at Brian Head Ski Resort could eventually include a golf course, a lodge and high-end housing in this high-mountain corner of southwestern Utah. The resort wants to add a seventh chair lift and hopes the development will translate into longer stays for visitors and provide high-paying jobs in Iron County. (SL Trib)

BLM to Discuss Development of Oil Shale, Tar Sands

- The Bureau of Land Management has announced a series of hearings aimed at defining the scope of a broad environmental study it plans to do on the development of oil shale and tar sands in Utah, Colorado and Wyoming. It is projected that there could be the equivalent of 1 trillion barrels of oil trapped in the rock in the three-state area. (SL Trib)

Albertsons Ripe for $9.6B Deal

- An investment group that includes the Minnesota-based Supervalu Inc. grocery chain appears poised to win the auction for Albertsons Inc. with a bid of $9.6 billion. (SL Trib)

Utah Tech Council Makes No Decision on Changes

- Members of the Utah Technology Industry Council aren't ready to endorse draft legislation changing the council's structure and duties, but they aren't yet giving it a thumbs-down, either. (D-News)

State Auditor Seeks Guidelines for EDCUTAH

- The Economic Development Corporation of Utah (EDCU) is working with the Governor's Office to craft a series of guidelines to help the state measure how well the recruiting agency is doing its job. Those guidelines, which should be in place in a few months, were a key recommendation of a legislative auditor general's report about the Governor's Office of Economic Development. (SL Trib)

Salt Lake Chamber Seeks Small-Business Nominees

- The Salt Lake Chamber announced that nomination applications for its 2006 Small Business Awards are now available online at www.saltlakechamber.org. The annual event celebrates small-business success, entrepreneurial success, minority-owned businesses and community service. Criteria for each award are included with the nomination form. The deadline to submit nominations is Jan. 10, 2006. For more information, call 801-328-5053. (D-News)

Jobless Rate Drops

- Utah's November jobless rate dropped 0.5 percentage point from October's 4.5 percent, the Department of Workforce Services reported Tuesday, with the decline providing positive momentum going into the final stretches of the holiday shopping season. (D-News)

INVESTOR SPOTLIGHT

Name/Title: Lou Ann Christensen, Mayor of Brigham City

Company: Brigham City Corporation

Company's mission statement: To enhance the quality of life by providing municipal services, protecting life and property with fiscal responsibility, while preserving our heritage for the citizens of Brigham City.

Education: Brigham Young University. Major: Communications with Human Resource Development emphasis.

Growing up: Eldest of seven children; raised in Orem, Utah.

Family: Married with six children ranging in age from 17-34: two living in the Bay Area in California; one in Laguna Beach, CA; two in Salt Lake City and a senior in high school…and four wonderful grandchildren.

Hobbies: Photography - mostly taking family memories.

Motivations/ambitions: To make a difference.

Why economic development is important: Acquiring healthy revenues through a vibrant economic development program is key to providing quality municipal services. Higher paying jobs increases the overall tax base, raises the standard of living and results in an increased quality of life for all citizens.

Hottest economic development issues you see (either for the state or in your work): Competing for the higher paying jobs involves being able to offer good incentives. At this time, RDAs are a city's best incentive to retain existing businesses that are expanding and to recruit new businesses. Utah needs more variety of incentives in order to compete with other states.

Improvements in economic development you’d like to see: Greater awareness of what local businesses are providing (such as services or products they offer) so that businesses can support Utah-based business growth. Also, broadening the incentives base as mentioned above.

Proudest Moment: Graduating from BYU as a single parent with three young and very active boys.

Most embarrassing moment: Rushing down the stairs at BYU's Marriott Center to take a seat before the prayer is said only to miss a step, tumble, and find everyone's head turned my way. I promptly and very gracefully picked myself up from the landing and curtsied.

Favorite book: Leadership, by Rudolph Giuliani.

Favorite Mentor: My parents. My father, whose impeccable integrity was an example to not only myself, but to many others who knew him; and my mother, whose cheerful and optimistic attitude I will always strive for.

Your personal motto: To leave wherever I go a little bit better.

Anything else you’d like to share: I enjoy taking on difficult challenges and working with others to find proactive solutions.